Predictive Technology Group Inc (OTCMKTS: PRED) is an exciting bounce back play after a steep pullback from all-time highs. While the stock has taken a significant hit in recent months, one cannot dispute the company’s growth metrics and long-term prospects. The deep pullback presented an exciting buy opportunity as we discussed in our last article. Many of our subscribers went long at $1.50 after getting our emails on PRED.
Predictive Technology Price Analysis
The $1.50 is the immediate support level from where Predictive Technology is well supported for further upside action. The unveiling of a pharmacogenomic test panel targeting pain clinics is one of the catalysts fuelling the upward momentum. In addition, the company is fresh from inking a strategic partnership with the Preeclampsia Foundation as it moves to expand the study of genetic factors.
Recent price action activity indicates that Predictive Technology might as well have hit bottom at the $1.50 level and due for a correction higher. A flurry of positive developments on the strengthening of the company’s product line should continue to trigger renewed investor interest in the stock.
Above the $3 mark, the stock should make a run for the $5 a share mark, seen as the immediate resistance level standing in the way of further upside action. A close above the $3 a share level should bring to an end the bearish run that PRED succumbed in July.
About Predictive Technology
Predictive technology bills itself as a media technology company seeking to revolutionize patient care through predictive data analytics. The company is engaged in the development of gene-based diagnostics and therapeutics, targeting endometriosis, Scoliosis, and degenerative disc disease.
Chronic Pain Opportunity
While Predictive Technology has shed a significant amount of market share after peaking in June, the future can only be bright given the progress made in developing gene-based diagnostics. The leader in data analytics for disease identification is fresh from unveiling game-changing pharmacogenomics test, poised to expand its footprint into the pain management market.
The new pain test panel is designed to evaluate genetic factors that influence people’s response to medications. Predictive Technology, through its subsidiary Predictive Laboratories, has enrolled 350 patients as part of an Investigational Review Board approved clinical trials.
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“The ability to effectively treat individuals in pain represents a significant market opportunity, and of even greater importance it serves an obligation of society to alleviate the current pain and suffering of an individual more safely and effectively,” said CEO Bradley Robinson.
Preeclampsia Foundation Partnership
Separately, Predictive Technology has entered into a research collaboration with the Preeclampsia Foundation. As part of the partnership, the two are toe expand the study of genetic factors that trigger preeclampsia.
The condition affects about 300,000 pregnancies every year, resulting in severe maternal and fetal outcomes. Organ failure, massive blood loss, and permanent disability are some of the outcomes associated with medical conditions.
By studying the genetic factors associated with the condition, Predictive Technology and Preeclampsia hope to advance preeclampsia database. Predictive Laboratories will, in return, leverage the database to come up with a proprietary test for early detection, in women at risk of preeclampsia.
Robust Revenue Growth
Recent developments underscore a company that has made huge strides in building a strong infrastructure for enhancing development and commercialization of proprietary genetic-based diagnostics.
The future can only be bright, especially on the opening of a state of the art production laboratory and R&D facility. As it stands, Predictive Technology remains well positioned to meet production and sales needs of human cell and tissue products for regenerative medicine.
A tenth consecutive quarter of revenue growth in the third quarter of 2019, underscores a company in a phase of robust growth. Revenue for the first nine months of fiscal 2019 exceeded the $30 million mark. Revenue growth stems from continued growth in sales volume as well as strong demand for human cell and tissue products.
True to the adage, buy low sell high. The steep pullback presented an opportunity to bet on Predictive Technology long-term prospects and growth metrics. We still believe PRED will see new highs later on this year.
Market sentiments have started to pick up some steam following a flurry of positive developments and robust revenue growth that affirm growth metrics. For long-term investors, Predictive Technology is an interesting play with tremendous opportunity on the horizon.
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Disclosure: We have no position in PRED and have not been compensated for this article.